Half Year 2024 Purcari Wineries PCL Earnings Call Transcript
Key Points
- Purcari Wineries PCL (BSE:WINE) reported a 3% year-on-year revenue growth for the first half of the year, with core wine and brandy sales increasing by 12%.
- The company achieved a gross margin of 51% and impressive EBITDA numbers, indicating strong profitability.
- Purcari's premium brands, such as Purcari and Crama Ceptura, are performing well across multiple markets, contributing to the company's growth.
- The company has expanded its share capital and paid dividends, demonstrating a commitment to shareholder returns.
- Purcari Wineries PCL is investing in a new digital hub to accelerate digitization and improve operational efficiency.
- The discontinuation of Ecosmart operations has impacted overall group revenue growth, slowing it down compared to core revenue growth.
- The company faces challenges in the Polish market, with pressure in the mainstream segment affecting sales.
- In Moldova, the brandy segment is experiencing fierce competition and aggressive pricing, impacting sales.
- Purcari Wineries PCL has revised its revenue guidance downward due to unexpected price competition and a strategic focus on profitability over volume.
- The Romanian economy's slower growth could potentially impact future sales, although the company remains optimistic about its market position.
Ladies and gentleman, it's a pleasure to welcome you on our call presenting the second half -- and the first half and the second quarter financial results of Purcari Winery, I'm very glad to be joined by our team here. So we have Victor Bostan, CEO on the call. We have Alex Filip, Deputy CEO; We have Anatol Belibov, the incoming CFO, but also Victor Arapan, who's transitioning, he's works towards Anatol in a very organic way. So we're very grateful to Victor for this transition. And we also have Victoria Moldovan, our Investor Relations Officer.
We have a wider team on the call, though, and I'm very excited actually to, our company continues investing in people, continuous training the team and you may have read the news over the last few weeks and months that we have made quite a step up in terms of our team.
So since Alex Filipe has joined us as Deputy CEO from McKinsey, he worked on bringing new fresh blood to Purcari, new energy, new competencies because we understand that 10 years ago, we're doing $10 million
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